<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                    FORM 10-K

                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934



      For the fiscal year ended                          0-8254
--------------------------------------    --------------------------------------
          December 31, 1998                       Commission File Number


                              WESTFORD GROUP, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                Ohio                                    31-0854431
--------------------------------------    --------------------------------------
   (State or other jurisdiction of                   (I.R.S. Employer
    incorporation or organization)                  Identification No.)


  20 East Broad Street, Columbus, Ohio                              43215
--------------------------------------------------------------------------------
(Address of principal executive offices)                         (Zip Code)


Registrant's telephone number including area code    (614) 228-2800
                                                  --------------------

Securities registered pursuant to Section 12(b) of the Act:

                                                 Name of Each Exchange on
         Title of Each Class                         Which Registered

               NONE                                        NONE
--------------------------------------    --------------------------------------

Securities registered pursuant to Section 12(g) of the Act:

                        COMMON SHARES, WITHOUT PAR VALUE
--------------------------------------------------------------------------------
                                (Title of Class)


Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                          YES   X       NO
                                              -----        -----

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ X ]

Due to the absence of a significant trading market in the Registrant's Common
Shares, the Registrant does not have reliable information on the aggregate
market value of its voting stock held by non-affiliates.

As of February 11, 1999, the Registrant had 1,351,206 Common Shares, without par
value, outstanding.
<PAGE>   2
<TABLE>
                       WESTFORD GROUP, INC. AND SUBSIDIARY

                          1998 FORM 10-K ANNUAL REPORT


                                TABLE OF CONTENTS
<CAPTION>
                                                                         Page
<S>       <C>                                                            <C>
                                     PART I

Item 1.   Business .....................................................   3
Item 2.   Properties ...................................................   4
Item 3.   Legal Proceedings ............................................   4
Item 4.   Submission of Matters to a Vote of Security Holders ..........   4

                                     PART II

Item 5.   Market for the Registrant's Common Stock and Related
              Security Holder Matters ..................................   5
Item 6.   Selected Financial Data ......................................   6
Item 7.   Management's Discussion and Analysis of Financial
              Condition and Results of Operation .......................   7
Item 7A.  Quantitative and Qualitative Disclosures About Market
              Risk .....................................................   9
Item 8.   Financial Statements and Supplementary Data ..................   9
Item 9.   Changes in and Disagreements with Accountants on
              Accounting and Financial Disclosure ......................  22

                                    PART III

Item 10.  Directors and Executive Officers of the Registrant ...........  22
Item 11.  Executive Compensation .......................................  23
Item 12.  Security Ownership of Certain Beneficial Owners and
              Management ...............................................  24
Item 13.  Certain Relationships and Related Transactions ...............  25

                                     Part IV

Item 14.  Exhibits, Financial Statement Schedules and Reports on
              Form 8-K .................................................  25
</TABLE>
<PAGE>   3
                                     PART I

Item 1.  Business
         --------

The Registrant (which term unless otherwise indicated, includes Westford Group,
Inc. and its subsidiary) was incorporated in Ohio in 1972 and was a bank holding
company prior to August 15, 1978. Effective as of that date, the Registrant sold
all of its controlling interest in the Community National Bank of Mt. Gilead,
Ohio ("Mt. Gilead Bank").

Following the disposition of the Mt. Gilead Bank, the intention of the
Registrant was to utilize a portion of the sale proceeds to commence operations
as a reinsurer in the credit life and disability reinsurance business. These
operations, however, were frustrated as a result of shareholder litigation which
was eventually settled and dismissed.

On January 12, 1988, American Legal Publishing Corporation ("ALP Corporation"),
a newly formed, wholly-owned subsidiary of Westford Group, Inc., purchased
substantially all of the assets of AM Comp, Inc., formerly American Legal
Publishing Company. The acquired assets consisted generally of inventory,
equipment, supplies, computer software, contracts, leasehold interest and
various other intangibles. See note 1(f) to the consolidated financial
statements.

ALP Corporation's primary business consists of the codification of municipal and
county Codes of Ordinances and the supplementing thereof. The services provided
by ALP Corporation to a customer in providing codification services include:

       (1)    A review of the municipal ordinances of the customer to detect
              possible conflicts with state and federal law, state and federal
              constitutions, and state and federal court decisions. This review
              is done at the specific direction of the customer's attorney.

       (2)    A review of the ordinances of the customer to make sure that they
              do not conflict with other ordinances or the charter, if one
              exists.

       (3)    Suggestions to the customer for changes, additions and deletions
              to their ordinances. After editorial and indexing work is
              concluded, the code is enacted into law and published in a
              loose-leaf or electronic form to facilitate regular supplementing
              to reflect changes in state and local law.

ALP Corporation believes that the additional services it provides in codifying a
customer's ordinances distinguish it from competitors.

Most of ALP Corporation's codification contracts include a provision to
supplement the customer's code for an additional fee, not less than annually,
for a period of five (5) years. Although the agreement may usually be terminated
by the customer by written notice prior to ninety (90) days before the
anticipated delivery date of the supplement, ALP Corporation has generally been
successful in retaining municipalities on supplemental contracts, and in having
these contracts renewed prior to expiration.

Some states now require that municipalities and/or counties each have a Code of
Ordinances. For this reason, ALP Corporation has prepared and marketed a "Basic
Code of Ordinances" to smaller municipalities in these states who do not need or
cannot afford a custom Code of Ordinances but who, by adoption of a basic code,
can meet state law requirements or receive the economic benefits of having a
local code. ALP Corporation has developed this basic or model Code of Ordinances
for the states of Ohio, Illinois, Indiana, Kentucky and North Carolina. It has
also developed, and is marketing with a Texas firm, a model Code of Ordinances
for Texas. In North Carolina, Kentucky, Oregon, Minnesota and Nebraska, ALP
Corporation serves as the official code consultant to the state municipal
leagues. Furthermore, in 1985, the State of Kentucky enacted legislation
providing grants to municipalities to fund a Code of Ordinances as mandated by
state law.

ALP Corporation presently has twenty-five full-time employees. The staff
consists of marketing, production, general administrative and editorial
personnel, eight of whom have law degrees.

                                        3
<PAGE>   4
There are approximately twenty-five (25) companies involved in the codification
of local government ordinances. Five (5) companies operate on either a national
or regional basis, with the rest serving clients only within a relatively small
geographic area. ALP Corporation currently represents approximately 1,000 local
governmental units in thirty-two (32) states.

Rapid growth in the codification industry is most easily attainable through
acquisition of competitors. In recent years, ALP Corporation held serious
discussions with competitors regarding the purchase of such operations by ALP
Corporation. However, no agreements have been reached to date.

A logical opportunity for diversification lies in the school textbook market.
Nearly all states require the teaching of the rudiments of civics and government
in elementary and secondary schools. ALP Corporation, by the nature of its
business, enjoys a unique position through which it can provide educational
institutions with pertinent social studies topics and other textbook update
materials. Presently, the company publishes an educational newsletter which aids
teachers in presenting current state and local government issues to students.

The publication of local government material in electronic formats has become a
growing market segment. Local governments are looking for ways to manage
information electronically rather than to rely on growing stacks of paper
documents. ALP Corporation has developed programs for maintaining codes of
ordinances, meeting minutes, attorney opinions and other public documents in an
electronic format. In Ohio, California, Texas, Michigan and Wisconsin, ALP
Corporation contracts with the state municipal leagues to provide various
electronic records management services.


Item 2.  Properties
         ----------

The executive offices of the Registrant are located in an office building at 20
East Broad Street, Columbus, Ohio. The office facilities are shared with other
affiliated entities and rental and bookkeeping expenses are allocated among
them. The Registrant does not own any materially important property used in its
operations.

ALP Corporation occupies 5,558 square feet of rentable area on the 12th floor of
the building located at 432 Walnut Street, Cincinnati, Ohio under an operating
lease which will expire July 31, 2003. The lease provides for a monthly rental
of $5,442, net of reimbursements payable to the lessor for cost of maintenance
and operation of the building.


Item 3.  Legal Proceedings
         -----------------

The Company is routinely a party to litigation incidental to its business, as
well as to other nonmaterial litigation. Management believes that no individual
item of litigation, or group of similar items of litigation, is likely to result
in judgments that will have a material adverse effect on the financial condition
or results of operations of the Company.


Item 4.  Submission of Matters To a Vote of Security Holders
         ---------------------------------------------------

None.

                                        4
<PAGE>   5
                                     PART II


Item 5.  Market for the Registrant's Common Stock and Related Security Holders
         ---------------------------------------------------------------------
         Matters
         -------

(a)    Market information

       There is no established public trading market for the Registrant's
       shares.

       The Registrant does not have reliable information with respect to high
       and low bid prices for each quarter.

(b)    Holders

       The number of holders of record of the Registrant's Common Stock as of
       February 11, 1999 was 2,072.

(c)    Dividends

       There has been no cash dividend declared or paid on the Registrant's
       outstanding common stock for the two most recent fiscal years. The
       Registrant's intent is to reinvest earnings to finance its growth for the
       purpose of improving and increasing both earnings per share and net
       worth, and therefore it is not anticipated that the Registrant will pay
       dividends in the foreseeable future.


                      (THIS SPACE INTENTIONALLY LEFT BLANK)

                                        5
<PAGE>   6
Item 6.  Selected Financial Data
         -----------------------

Selected Income Statement Data:

<TABLE>
<CAPTION>
                                                             Year Ended December 31,
                            -----------------------------------------------------------------------------------
                               1998              1997               1996              1995              1994
                            ----------        ----------         ----------        ----------        ----------
<S>                         <C>               <C>                <C>               <C>               <C>
Sales                       $1,702,862        $1,440,738         $1,505,952        $1,389,459        $1,234,981

Cost of sales                  832,748           773,756            817,434           815,399           731,089

Selling, general and
   administrative
   expenses                    695,716           665,764            582,131           424,917           416,149

Income taxes                    32,482            10,107             27,876            31,579            33,451

Net income (loss)              138,177           (15,159)            68,800            99,923            35,246

Net income (loss)
   per common share,
   diluted                  $      .08        $     (.01)        $      .04        $      .06        $      .02

Average number of
   shares of common
   stock outstanding         1,696,042         1,681,165          1,666,219         1,664,842         1,661,226


Selected Balance Sheet Data:

<CAPTION>
                                                             Year Ended December 31,
                              ---------------------------------------------------------------------------------
                                1998              1997               1996              1995              1994
                              --------          --------           --------          --------          --------
<S>                           <C>               <C>                <C>               <C>               <C>
Current assets                $815,871          $576,734           $532,313          $552,267          $406,434
Notes payable
   to bank                          --             3,575              3,575            83,594            10,009
Current liabilities            273,091           214,060            144,969           266,150           276,422
Working capital                542,780           362,674            387,344           286,117           130,012
Total assets                   978,542           782,586            733,543           791,060           669,359
Shareholders' equity           655,451           516,524            530,933           462,139           361,966
</TABLE>

                                        6
<PAGE>   7
Item 7.  Management's Discussion and Analysis of Financial Condition and Results
         -----------------------------------------------------------------------
         of Operations
         -------------

Summary

The following table sets forth changes in certain items reflected in the
financial data as compared to the indicated prior period.

<TABLE>
<CAPTION>
                                                         Period to Period
                                                         Increase(Decrease)
                                                      Year Ended December 31,
                                                    1997-98             1996-97
                                                   --------            ---------
<S>                                                <C>                 <C>      
         Sales                                     $262,124            $(65,214)
         Cost of sales                               58,992             (43,678)
         Selling, general and
          administrative expenses                    29,952              83,633
</TABLE>

Results of Operations
---------------------

The Company's business is principally carried on through its wholly-owned
subsidiary, ALP Corporation. ALP Corporation's sales increased 18.2% from
$1,440,738 during 1997 to $1,702,862 during 1998 principally due to increases in
subscription and supplementation sales offset by a decrease in codification
sales. Codification revenue decreased 7.8% from $404,352 to $372,866 during 1997
as compared to 1998, respectively, principally due to a leveling of sales in the
Company's key growth areas coming into 1998. Supplementation services on
existing codes of ordinance increased 26.2% from $787,434 to $994,119, due to
maximizing revenue from existing clients and accelerated job completions.
Subscription services provided both to governmental and emerging private
industry markets increased 45.2% from $248,686 during 1997 to $361,164 during
1998 due to subscription sales of expended search and retrieval software
products, including city league law handbooks, city production manuals, state
statutes in addition to sales of several significant customers manuals on CD.
Gross margin increased 30.5% in 1998 as compared to 1997 as sales increased at a
higher percentage rate than the percentage rate increase in cost of sales,
mainly reflecting lower costs resulting from production efficiencies. Costs of
sales increased 7.7% from $773,356 to $832,748 during 1997 as compared to 1998,
respectively, primarily due to increases in production salaries, insurance,
copier supplies and postage.

ALP Corporation's sales decreased 4.3% during 1997 as compared to 1996,
primarily due to a decline in new contract sales in 1995 and 1996 that limited
growth in 1997 and a one time republication for a significant customer in 1996.
As a result, codification revenue decreased 20.8% during 1997 as compared with
1996. Subscription services in existing codes of ordinance increased 4.1% due to
increased subscriptions sales of search and retrieval software. Gross margin
decreased in 1997 as compared to 1996 as sales decreased at a higher percentage
rate than the percentage rate decrease in cost of sales. Selling, general and
administrative expenses increased 13.3% in 1997 as compared to 1996 primarily
due to increases in salaries, legal and professional, commissions and travel.

Liquidity and Capital Resources
-------------------------------

Although it is impossible to estimate accurately the future cash flow from the
operations of the Registrant's codification business, management believes the
Registrant's effective capital costs may increase. All of the capital
expenditures for 1998 were funded from the Company's cash flow from operations.
Equipment additions in 1999 are expected to approximate $50,000 and are also
planned to be funded from the Company's cash flow from operations. As of
December 31, 1998, the Company had a revolving credit agreement with a bank to
provide a $250,000 note. The credit facility has a maturity date of June 30,
1999 with renewal provisions, and bears interest at the banks prime rate (7.75%
per annum at December 31, 1998). Management does not know of any trends, events
or uncertainties that will have or that are reasonably likely to have material
effect on the Registrant's liquidity, capital resources or results of
operations.

                                        7
<PAGE>   8
Item 7.  Management's Discussion and Analysis of Financial Condition and Results
         -----------------------------------------------------------------------
         of Operations (continued)
         -------------------------


Intangible Asset
----------------

The excess of net assets acquired in a business combination over the purchase
price of approximately $165,000 was allocated to a database acquired. The
database is comprised of the municipal code data and related files. Provision
for amortization of the database is based on an estimated useful life of forty
years reflecting the long-lived nature of municipal codes.

Inflation
---------

Management does not consider the impact of changing prices to be material in the
analysis of the Company's overall operations.

Impact of the Year 2000 Issue
-----------------------------

The Company utilizes management information systems and software technology that
may be affected by Year 2000 issues throughout its business. During fiscal 1997,
the Company began to implement plans at both of its locations to ensure those
systems continue to meet its internal and external requirements. During fiscal
1997, the Company's Corporate office completed the installation and testing of
its internal financial systems and is Year 2000 compliant. The Corporate office
utilizes the latest version of Year 2000 compliant Platinum SQL software for its
internal financial system. All of ALP Corporation's Folio products are Year 2000
compliant. During the fourth quarter of 1998 ALP Corporation purchased the
network enhancement pack which contained Year 2000 compliance patches. The
invoicing database software is not Year 2000 compliant. The Company is in the
data gathering phase with regard to applications, database software and
hardware. The Company has a MCSE (Microsoft Certified Systems Engineer) on staff
to review the impact of its Year 2000 risks. Continuing evaluation by our MCSE
in developing contingency plans and to complete remediation work on separate
portions of the project are on-going. Expected completion of all phases is
anticipated by third quarter end, 1999. If the Company is unable to achieve Year
2000 compliance for its invoice database system, the Year 2000 would not have a
material impact on the operations of the Company as billings would be produced
with alternative procedures. The Company is developing a contingency plan for
its database software. Those plans include adapting and expanding the Company's
existing database system to be Year 2000 compliant. The cost of making these
adaptations is not expected to be material and will be expensed in the period
incurred.

Trends
------

The Company's results of operations have varied from quarter to quarter
principally because of fluctuations in production results. The Company's
experience indicates that sales increase during second and third quarters as a
result of sales to basic code subscribers. The Company expects that such
quarterly fluctuations may lessen as the percentage of the Company's new sales
are made to clients with fiscal years other than December 31, although there can
be no assurance that this will occur.

Forward-Looking Information
---------------------------

Statements in the following discussion that indicate the Company's or
management's intentions, hopes, beliefs, expectations or predictions of the
future are forward-looking statements. Additional information concerning factors
that could cause actual results to differ materially from those suggested in the
forward-looking statements is continued under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations" in the
Company's Annual Report on Form 10-K for the year ended December 31, 1998 filed
with the Securities and Exchange Commission, as the same may be amended from
time to time.

Forward-looking statements are not guarantees for performance. They involve
risks, uncertainties and assumptions. The future results and shareholder values
of the Company may differ materially from those expressed in these
forward-looking statements. Many factors that will determine these results and
values are beyond the Company's ability to control or predict. Shareholders are
cautioned not to put undue reliance on forward-looking statements. In addition,
the Company does not have an intention or obligation to update forward-looking
statements after the date hereof, even if new

                                        8
<PAGE>   9
Item 7.  Management's Discussion and Analysis of Financial Condition and Results
         -----------------------------------------------------------------------
         of Operations (continued)
         -------------------------


information, future events, or other circumstances have made them incorrect or
misleading. For those statements, the Company claims the protection of the safe
harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.


Item 7A. Quantitative and Qualitative Disclosures About Market Risk
         ----------------------------------------------------------

None.


Item 8.  Financial Statements and Supplementary Data
         -------------------------------------------

Index to Consolidated Financial Statements
------------------------------------------

       Included in Part II of this report:

       Independent Auditors' Reports

       Consolidated Balance Sheets as of December 31, 1998 and 1997

       Consolidated Statements of Operations for the years ended December 31,
       1998, 1997 and 1996

       Consolidated Statements of Shareholders' Equity for the years ended
       December 31, 1998, 1997 and 1996

       Consolidated Statements of Cash Flows for the years ended December 31,
       1998, 1997 and 1996

       Notes to Consolidated Financial Statements

                                        9
<PAGE>   10
                        REPORT OF INDEPENDENT ACCOUNTANTS


The Board of Directors
     and Stockholders
Westford Group, Inc.:


In our opinion, the accompanying consolidated balance sheets and the related
statements of income and shareholder's equity and of cash flows present fairly,
in all material respects, the financial position of Westford Group, Inc. and
subsidiary at December 31, 1998 and 1997, and the results of its operations and
its cash flows for each of the three years in the period ended December 31,
1998, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.


/s/PricewaterhouseCoopers LLP


Columbus, Ohio
March 5, 1999

                                       10
<PAGE>   11
<TABLE>
                              WESTFORD GROUP, INC.
                                 AND SUBSIDIARY

                           Consolidated Balance Sheets

                           December 31, 1998 and 1997
<CAPTION>
                       Assets                                 1998            1997
                       ------                               --------        --------
<S>                                                         <C>             <C>     
Current:
   Cash                                                     $400,983        $195,371
   Accounts receivable - trade                               260,340         212,715
   Estimated earnings in excess of billings on
      uncompleted codification contracts                     135,364         135,335
   Costs of uncompleted code supplements                      13,331          26,579
   Deferred taxes                                               --             4,777
   Other assets                                                5,853           1,957
                                                            --------        --------
         Total current assets                                815,871         576,734

Deferred taxes                                                  --            24,414
Property and equipment, net                                   42,571          57,197
Intangible asset, net of accumulated amortization of
  $45,555 in 1998 and $41,413 in 1997                        120,100         124,241
                                                            --------        --------
                                                            $978,542        $782,586
                                                            ========        ========
</TABLE>

                                                                     (Continued)

                                       11
<PAGE>   12
<TABLE>
                                      WESTFORD GROUP, INC.
                                         AND SUBSIDIARY

                             Consolidated Balance Sheets, Continued
<CAPTION>
        Liabilities and Shareholders' Equity                         1998               1997
        ------------------------------------                      ---------         -----------
<S>                                                               <C>               <C>
Current liabilities:
   Accounts payable                                               $  95,557         $    75,411
   Note payable - bank                                                 --                 3,575
   Accrued salaries, commissions and payroll taxes
      payable                                                       102,577              70,002
   Accrued legal and professional                                     6,845              24,000
   Billings in excess of estimated earnings on
      uncompleted codification contracts                             39,142              24,878
   Current portion of capital lease obligations                       2,002               5,639
   Deferred taxes                                                     3,293                --
   Deferred revenue                                                  15,323              10,555
Other accrued liabilities                                             8,352                --
                                                                  ---------         -----------

            Total current liabilities                               273,091             214,060

Capital lease obligations, less current portion                        --                 2,002

Debenture payable                                                    50,000              50,000
                                                                  ---------         -----------

            Total liabilities                                       323,091             266,062
                                                                  ---------         -----------

Commitments

Series two serial redeemable preference stock, 500 shares
   authorized, none issued                                             --                  --
                                                                  ---------         -----------


Shareholders' Equity:
   Serial preference stock, without par value: authorized
      100,000 shares
      Series one serial preference, authorized 100 shares;
         none issued                                                   --                  --
   Class A preferred shares, par value $2,285; authorized
      500 shares; none issued                                          --                  --
   Class B preferred shares, par value $500; authorized
      4,000 shares; none issued                                        --                  --
   Common stock, without par value; authorized 2,000,000
      shares; 1,434,202 shares issued                               871,286             871,286
   Additional paid-in capital                                       782,499             785,619
   Accumulated deficit                                             (976,925)         (1,115,102)
                                                                  ---------         -----------
                                                                    676,860             541,803


   Less: Treasury stock, at cost (82,996 common shares
              at December 31, 1998 and 97,996 at December
              31, 1997)                                             (21,409)            (25,279)
                                                                  ---------         -----------

            Total shareholders' equity                              655,451             516,524
                                                                  ---------         -----------

            Total liabilities and shareholders equity             $ 978,542         $   782,586
                                                                  =========         ===========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       12
<PAGE>   13
<TABLE>
                                         WESTFORD GROUP, INC.
                                            AND SUBSIDIARY

                                 Consolidated Statements of Operations

                             Years Ended December 31, 1998, 1997, and 1996
<CAPTION>
                                                        1998               1997               1996
                                                     ----------         ----------         ----------
<S>                                                  <C>                <C>                <C>
Sales                                                $1,702,862         $1,440,738         $1,505,952

Cost of sales                                           832,748            773,756            817,434
                                                     ----------         ----------         ----------

                                                        870,114            666,982            688,518
                                                     ----------         ----------         ----------

Selling, general and administrative expenses:
   Salaries and related costs                           324,773            320,814            289,782
   Professional fees                                    149,897            102,443             79,832
   Other                                                221,046            242,507            212,517
                                                     ----------         ----------         ----------
                                                        695,716            665,764            582,131
                                                     ----------         ----------         ----------

Non-operating income (expense):
   Interest expense                                      (5,838)            (6,270)            (9,740)
   Other income                                           2,099               --                   29
                                                     ----------         ----------         ----------
                                                         (3,739)            (6,270)            (9,711)
                                                     ----------         ----------         ----------

      Income (loss) before federal income
         tax expense                                    170,659             (5,052)            96,676

Federal income tax expense                               32,482             10,107             27,876
                                                     ----------         ----------         ----------

      Net income (loss)                              $  138,177         $  (15,159)        $   68,800
                                                     ==========         ==========         ==========

Net income (loss) per common share                   $      .10         $     (.01)        $      .05
                                                     ==========         ==========         ==========

Net income (loss) per common share,
      assuming dilution                              $      .08         $     (.01)        $      .04
                                                     ==========         ==========         ==========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       13
<PAGE>   14
<TABLE>
                                                    WESTFORD GROUP, INC.
                                                       AND SUBSIDIARY

                                       Consolidated Statements of Shareholders' Equity

                                        Years Ended December 31, 1998, 1997, and 1996
<CAPTION>
                                                          Additional                                              Total
                                            Common         paid-in          Accumulated         Treasury      shareholders'
                                            stock          capital            deficit            stock            equity
                                           --------       ----------        -----------         --------      -------------
<S>                                        <C>            <C>               <C>                 <C>           <C>
Balance December 31, 1995                  $871,286        $788,739         $(1,168,743)        $(29,143)        $462,139

  Net income                                   --              --                68,800             --             68,800
  Purchase of 20 treasury shares               --              --                  --                 (6)              (6)
                                           --------        --------         -----------         --------         --------

Balance December 31, 1996                   871,286         788,739          (1,099,943)         (29,149)         530,933

  Net loss                                     --              --               (15,159)            --            (15,159)
  Issuance of 15,000 treasury
    shares as employee stock awards            --            (3,120)               --              3,870              750
                                           --------        --------         -----------         --------         --------

Balance December 31, 1997                   871,286         785,619          (1,115,102)         (25,279)         516,524

  Net income                                   --              --               138,177             --            138,177
  Issuance of 15,000 treasury
    shares as employee stock awards            --            (3,120)               --              3,870              750
                                           --------        --------         -----------         --------         --------

Balance December 31, 1998                  $871,286        $782,499         $  (976,925)        $(21,409)        $655,451
                                           ========        ========         ===========         ========         ========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       14
<PAGE>   15
<TABLE>
                                         WESTFORD GROUP, INC.
                                            AND SUBSIDIARY

                                 Consolidated Statements of Cash Flows

                             Years Ended December 31, 1998, 1997 and 1996
                                      Increase (Decrease) in Cash
<CAPTION>
                                                            1998             1997             1996
                                                          --------         --------         --------
<S>                                                       <C>              <C>              <C>
Cash flows from operating activities:
   Net income (loss)                                      $138,177         $(15,159)        $ 68,800
   Adjustments to reconcile net income to cash
     provided by operating activities:
      Net realized gain on disposal of
         equipment                                            --               --                (29)
      Depreciation and amortization                         29,509           32,123           30,736
      Deferred federal income tax expense                   32,482           10,107           27,875
      Employee stock awards                                    750              750             --
      (Increase) decrease in accounts
        receivable - trade                                 (47,625)          (5,380)         109,117
      (Increase) decrease in estimated earnings
         in excess of billings on uncompleted
         codification contracts                                (29)         (15,278)          34,150
      (Increase) decrease in costs of uncompleted
        code supplements                                    13,248           12,582          (11,500)
      (Increase) decrease in other assets                   (3,896)             330              (82)
      Increase (decrease) in accounts payable               20,146           21,958           (6,392)
      Increase in accrued salaries, commissions
         and payroll taxes payable                          32,575            3,817            3,201
      Increase (decrease) in accrued legal and
         professional                                      (17,155)          24,000             --
      Increase (decrease) in billings in excess
         of estimated earnings on uncompleted
         codification contracts                             14,264            8,252          (24,901)
      Increase in other liabilities                         13,120           10,555             --
                                                          --------         --------         --------

         Net cash provided by operating activities         225,566           87,907          230,975
                                                          --------         --------         --------


Cash flows from investing activities:
   Purchase of property and equipment                      (10,740)         (26,867)         (20,953)
   Sale of equipment                                          --               --                120
                                                          --------         --------         --------

         Net cash used in investing activities             (10,740)         (26,867)         (20,833)
                                                          --------         --------         --------
</TABLE>

                                                                     (Continued)

                                       15
<PAGE>   16
<TABLE>
                                       WESTFORD GROUP, INC.
                                          AND SUBSIDIARY

                         Consolidated Statements of Cash Flows, Continued
<CAPTION>
                                                        1998             1997             1996
                                                      --------         --------         ---------
<S>                                                   <C>              <C>              <C>
Cash flows from financing activities:
   Proceeds from note payable to bank                 $   --           $   --           $  68,981
   Repayment of note payable to bank                    (3,575)            --            (149,000)
   Principal payments under capital lease
     obligations                                        (5,639)          (5,130)          (18,200)
   Purchase of treasury shares                            --               --                  (6)
                                                      --------         --------         ---------


         Net cash used in financing activities          (9,214)          (5,130)          (98,225)
                                                      --------         --------         ---------

Net increase in cash                                   205,612           56,660           111,917
                                                      --------         --------         ---------

Cash at beginning of year                              195,371          138,711            26,794
                                                      --------         --------         ---------

Cash at end of year                                   $400,983         $195,371         $ 138,711
                                                      ========         ========         =========


Supplemental cash flow disclosure:
   Interest paid                                      $  5,838         $  6,720         $   8,465
                                                      ========         ========         =========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       16
<PAGE>   17
                              WESTFORD GROUP, INC.
                                 AND SUBSIDIARY

                   Notes to Consolidated Financial Statements

                        December 31, 1998, 1997, and 1996


(1)     Summary of Significant Accounting Policies
        ------------------------------------------

        The accompanying consolidated financial statements include the following
        significant accounting policies:

        (a)   Consolidation Policy
              --------------------

              The accompanying financial statements include the accounts of
              Westford Group, Inc. (the "Company") and its wholly-owned
              subsidiary, American Legal Publishing Corporation ("ALP
              Corporation"). ALP Corporation is engaged in the codification of
              municipal and county codes of ordinances and the supplementing
              thereof. All significant intercompany transactions and balances
              have been eliminated in this consolidation.

              The preparation of financial statements in conformity with
              generally accepted accounting principles requires management to
              make estimates and assumptions that affect the reported amounts of
              assets and liabilities and disclosure of contingent assets and
              liabilities at the date of the financial statements and the
              reported amounts of revenues and expenses during the reporting
              period. Actual results could differ from those estimates. Note
              1(b).

        (b)   Revenue and Cost Recognition
              ----------------------------

              Revenue from municipal code contracts is recognized on the
              percentage-of-completion method; completion is measured based on
              the percentage of direct labor costs incurred to date to estimated
              direct labor costs for each contract. While management uses
              available information to estimate total direct labor costs on each
              contract, actual experience may vary from estimated amounts. Under
              this method, the costs incurred and the related revenues are
              included in the statement of operations as work progresses.
              Adjustments to contract cost estimates are made in the periods in
              which the facts which require such revisions become known. If a
              revised estimate indicates a loss, such loss is provided for in
              its entirety. The amount by which revenues are earned in advance
              of contractual collection dates is an unbilled receivable and the
              amount by which contractual billings exceed earned revenues is
              unrealized revenue which is carried as a liability.

              Revenue from code supplements is recognized on the
              completed-contract method because the typical supplement is
              completed in a few months. No progress payments are billed due to
              the short production time and the low average supplement contract
              price. Supplement contracts in process are valued at the lower of
              cost or contract price less estimated cost of completion. The
              asset, "Costs of uncompleted code supplements," represents all
              supplement costs incurred to date. Provisions for estimated losses
              on uncompleted contracts are made in the period in which losses
              are determined.

                                       17
<PAGE>   18
                              WESTFORD GROUP, INC.
                                 AND SUBSIDIARY

              Notes to Consolidated Financial Statements, Continued


        (c)   Property and Equipment
              ----------------------

              Property and equipment are recorded on a cost basis. Depreciation
              is computed using the straight-line method in amounts adequate to
              amortize costs over the estimated useful life of the applicable
              asset generally ranging from three to five years. Equipment under
              capital leases is stated at the present value of the net minimum
              lease payments and is amortized over the lease term. When assets
              are retired or otherwise disposed of, the cost and related
              accumulated depreciation are removed from the accounts and any
              resulting gain or loss is recognized as income for the period. The
              cost of maintenance and repairs is charged to income as incurred;
              significant renewals and betterments are capitalized.

        (d)   Federal Income Taxes
              --------------------

              The Company files a consolidated federal income tax return with
              its subsidiary. Deferred tax liabilities and assets have been
              recognized for the expected future tax consequences of events that
              have been included in the financial statements or tax returns.
              Deferred income taxes for temporary differences between financial
              statement and income tax bases of assets and liabilities and net
              operating loss carryforwards are recognized at the average
              graduated tax rate for the estimated amount of taxable income in
              future years.

        (e)   Earnings Per Share
              ------------------

              Effective December 31, 1997, the Company adopted Statement of
              Financial Accounting Standards (SFAS) No. 128, "Earnings Per
              Share." The statement specified the computation, presentation and
              disclosure requirements for earnings per share for entities with
              publicly held common stock, and required restatement of all prior
              period earnings per share data presented. The impact of the
              statement on the company's earnings per share was not material.

              Net income per common share is presented in two prescribed
              methods. Net Income Per Common Share is calculated by dividing net
              income available to common stockholders by the weighed-average
              number of common shares outstanding. Net Income Per common
              Share-Assuming Dilution is calculated by dividing net income
              available to common stockholders by the weighted-average number of
              common shares outstanding adjusted for any dilutive potential
              common shares for the period.


        (f)   Intangible Asset
              ----------------

              During 1988, the Company acquired substantially all the assets of
              AM Comp, Inc., in an acquisition accounted for as a purchase. The
              excess of AM Comp, Inc.'s net assets acquired over the purchase
              price of $165,654 was allocated to the database. The database is
              comprised of the municipal code data and related files. Provision
              for amortization of the database is based on an estimated useful
              life of forty years and is computed on the straight-line method.

(2)     Uncompleted Contracts
        ---------------------

        Revenues earned on uncompleted codification contracts were $819,710 and
        $512,671 and billings to date on those contracts were $723,488 and
        $402,214 at December 31, 1998 and 1997, respectively. The excess of
        billings and estimated earnings over billings to date are presented in
        the accompanying consolidated balance sheets.

                                       18
<PAGE>   19
                              WESTFORD GROUP, INC.
                                 AND SUBSIDIARY

              Notes to Consolidated Financial Statements, Continued


(3)     Property and Equipment
        ----------------------

        Property and equipment at December 31, consists of the following:

<TABLE>
<CAPTION>
                                                          1998           1997
                                                        ---------     ---------
<S>                                                     <C>           <C>
               Machinery and equipment                  $ 174,044     $ 164,860
               Furniture and fixtures                       8,455         6,897
               Capital lease equipment                     24,491        24,491
                                                        ---------     ---------
                                                          206,990       196,248
               Less:  accumulated depreciation and
                 amortization                            (164,419)     (139,051)
                                                        ---------     ---------
                                                        $  42,571     $  57,197
                                                        =========     =========
</TABLE>

(4)     Note Payable - Bank
        -------------------

        The Company has a revolving credit agreement with a bank to provide a
        $250,000 note with repayment on demand by the lender with a maturity of
        June 30, 1999. The Company had no outstanding balance at December 31,
        1998 and had an outstanding balance of $3,575 at December 31, 1997 under
        this arrangement. Advances under the revolving credit line bear interest
        payable quarterly at the lending bank's prime rate (7.75% at December
        31, 1998).

        The note is personally guaranteed by the Company's Chief Executive
        Officer up to $100,000 plus accrued interest and collateralized by the
        assignment of the Company's property and equipment and accounts
        receivable.

(5)     Leases
        ------

        The Company's office facilities are shared with other affiliated
        entities and rental and bookkeeping expenses are allocated among them.
        The Company's share of these expenses were $2,940 in 1998, 1997 and
        1996.

        ALP Corporation occupies space under an operating lease which will
        expire July 31, 2003. It is also a party to a capital lease for
        equipment.

        The following is a schedule of ALP Corporation's future minimum lease
        payments for capital and operating leases as of December 31, 1998.

<TABLE>
<CAPTION>
                                                  Capital     Operating
                   Year ending                     lease        lease
                   -----------                    -------     ---------
<S>                                               <C>         <C>
                       1999                        $2,040      $ 65,307
                       2000                          --          65,307
                       2001                          --          66,580
                       2002                          --          68,363
                       2003                          --          39,879
                                                   ------      --------
        Total minimum lease payments                2,040      $305,436
        Less: Amount representing interest             38      ========
                                                   ------
        Present value of net minimum
           lease payments                           2,002
        Less: Current installments of
           obligations under capital lease          2,002
                                                   ------
        Long-term obligation under capital
         lease                                     $ --
                                                   ======
</TABLE>

        Total rental expenses under the operating lease were $62,818, $60,374,
        and $61,313 in 1998, 1997 and 1996, respectively. Included in
        accumulated depreciation and amortization is $23,243 and $18,350 of
        accumulated amortization applicable to capital lease equipment at
        December 31, 1998 and 1997, respectively.

                                       19
<PAGE>   20
                              WESTFORD GROUP, INC.
                                 AND SUBSIDIARY

              Notes to Consolidated Financial Statements, Continued

(6)     Debenture Payable
        -----------------

        On August 7, 1992, a resolution was adopted by the Company to authorize
        a $50,000 convertible subordinated debenture, due December 31, 1995,
        issued to Bancinsurance Corporation, an affiliate of the Company through
        a common officer and principal shareholder. Each $1,000 of principal is
        convertible into 6,900 shares of common stock at the holder's option.
        The debenture may be prepaid, in whole or in part, by the Company upon
        thirty days prior written notice without penalty. Interest accrues at
        the rate of ten percent per annum and is payable quarterly on the last
        day of each March, June, September, and December until the principal sum
        has been paid. In the event of default, all obligations shall become
        immediately due and payable at the option of the holder. On December 1,
        1995, a resolution was adopted by the Company to renew the debenture.
        The maturity was extended to December 31, 2000.

(7)     Federal Income Taxes
        --------------------

        Deferred income taxes for 1998 and 1997 reflect the impact of "temporary
        differences" between amounts of assets and liabilities for financial
        reporting purposes and such amounts as measured on an income tax basis.
        Temporary differences and carryforwards which give rise to the net
        deferred tax (liability) asset at December 31, are as follows:

<TABLE>
<CAPTION>
                                                             1998             1997
                                                           --------         --------
<S>                                                        <C>              <C>     
         Deferred tax asset:

            Tax operating loss carryforwards               $ 25,531         $ 68,504

         Deferred tax liability:

            Intangible asset                                (28,824)         (29,818)
                                                           --------         --------
               Net deferred tax (liability) asset            (3,293)          38,686
               Valuation allowance                             --             (9,495)
                                                           --------         --------
                                                             (3,293)          29,191
            Less current portion                               --             (4,777)
                                                           --------         --------

               Non-current deferred tax (liability)
                     asset                                 $ (3,293)        $ 24,414
                                                           ========         ========
</TABLE>


        As of December 31, 1998, the Company has net operating loss ("NOL")
        carryforwards of approximately $101,000 which would expire after the tax
        year ending December 31, 2008. The valuation allowance at December 31,
        1997 represented the portion of net operating loss carryforwards at
        enacted tax rates not expected to be utilized through future taxable
        income.

        The provision for federal income taxes at December 31, consists of the
        following:

<TABLE>
<CAPTION>
                                                            1998            1997            1996
                                                          -------         -------         -------
<S>                                                       <C>             <C>             <C>
              Deferred, amortization of intangible
                asset                                     $  (994)        $  (994)        $  (994)

              Utilization of NOL                           42,971             117          22,815

              Reversal of valuation allowance              (9,495)           --              --

              Expiration of unutilized NOL                   --            10,984           6,055
                                                          -------         -------         -------

                     Total deferred                        32,482          10,107          27,876
                                                          -------         -------         -------

              Federal income tax expense                  $32,482         $10,107         $27,876
                                                          =======         =======         =======
</TABLE>

                                       20
<PAGE>   21
                              WESTFORD GROUP, INC.
                                 AND SUBSIDIARY

              Notes to Consolidated Financial Statements, Continued


           For 1998, 1997 and 1996, the federal income tax expense differs from
           the amount computed by applying the normal tax rate of 34% to income
           before federal income taxes as follows:

<TABLE>
<CAPTION>
                                                        1998             1997            1996
                                                      --------         --------        -------
<S>                                                   <C>              <C>             <C>    
              Expected tax                            $ 58,024         $(1,718)        $32,870
              Officers life insurance                      315             292             272
              Business meals and entertainment           1,326           1,591           1,379
              Graduated rate differential              (17,688)          9,942          (6,645)
              Reversal of valuation allowance           (9,495)           --              --
                                                      --------         -------         -------

              Federal income tax expense              $ 32,482         $10,107         $27,876
                                                      ========         =======         =======
</TABLE>


(8)     Supplemental Disclosure for Earnings Per Share
        ----------------------------------------------

<TABLE>
<CAPTION>
                                                             1998              1997               1996
                                                          ----------        ----------         ----------
<S>                                                       <C>               <C>                <C>       
        Net income (loss)                                 $  138,177        $  (15,159)        $   68,800
                                                          ----------        ----------         ----------
        Income (loss) available to common
           stockholders, assuming dilution                $  138,177        $  (15,159)        $   68,800
                                                          ----------        ----------         ----------


        Weighted average common shares outstanding         1,351,042         1,336,165          1,321,219
        Adjustments for dilutive securities:
           Conversion of debentures                          345,000           345,000            345,000
                                                          ----------        ----------         ----------
        Diluted common shares                              1,696,042         1,681,165          1,666,219
                                                          ==========        ==========         ==========


        Net income per common share                       $      .10        $     (.01)        $      .05
        Net income per common share, assuming
           dilution                                       $      .08        $     (.01)        $      .04
</TABLE>

(9)     Litigation
        ----------

        The Company is routinely a party to litigation incidental to its
        business, as well as to other nonmaterial litigation. Management
        believes that no individual item of litigation, or group of similar
        items of litigation, is likely to result in judgments that will have a
        material adverse effect on the financial condition or results of
        operations of the Company.

                                       21
<PAGE>   22
Item 9.  Changes in and Disagreements with Accountants on Accounting and
         ---------------------------------------------------------------
         Financial Disclosure
         --------------------


None.

                                    PART III


Item 10. Directors and Executive Officers of the Registrant
         --------------------------------------------------

<TABLE>
<CAPTION>
                                                                 Originally
                                                                 elected to
Name               Age         Position                            office
----               ---         --------                          ----------
<S>                <C>         <C>                               <C>
Si Sokol            71         Chairman and Director                1972
                               President                            1980

James Davis         64         Director                             1981

David White         62         Director                             1981

John Sokol          36         Director                             1990

Daniel Harkins      69         Director                             1996

Steve Wolf          47         President American Legal             1988
                               Publishing, Inc.

Sally Cress         43         Treasurer                            1985
                               Secretary                            1985
</TABLE>

In addition to his positions with the Registrant, Si Sokol has been Chairman of
the Board of Bancinsurance Corporation since 1970 and Chairman of the Board of
Ohio Indemnity Company since 1969. He became President and Chief Executive
Officer of Bancinsurance Corporation and President and Chief Executive Officer
of Ohio Indemnity Company in 1980. Bancinsurance Corporation, whose common stock
is registered pursuant to Section 12 of the Securities Exchange Act of 1934, and
its wholly-owned property and casualty insurance subsidiary, Ohio Indemnity
Company, are engaged in the underwriting and sales of specialized property and
casualty insurance. In addition, Mr. Sokol serves as President of BCIS Services,
Inc. and is a Director of Fifth Third Bank, Columbus, Ohio. Mr. Sokol is the
father of John Sokol.

John Sokol, son of Si Sokol, became Executive Vice President of Bancinsurance
Corporation and Ohio Indemnity Company in 1996. He was Vice President of
Bancinsurance and Ohio Indemnity from 1993 to 1996. Prior to that time, he
served as an officer for what is now The Chase Bank of New York (formally
Manufacturers Hanover and Chemical Bank) from 1989 to 1993. Mr. Sokol became a
Director of Bancinsurance Corporation and Ohio Indemnity Company in 1990. He
became Chairman of Title Research Corporation in 1997. He also serves on the
Board of Trustees of the Central Ohio Transit Authority (COTA). He holds a B.A.
degree in Economics from Denison University and a M.B.A. in Finance from
Vanderbilt University.

James Davis joined Ohio Indemnity in 1989 as the Administrator of Ohio
Indemnity's Bonded Service Program and was elected a Vice President of the Ohio
Indemnity Company in 1992. He has served as a Director of Ohio Indemnity and
Bancinsurance Corporation since 1987 and as Vice President of BCIS Services,
Inc. since 1993. From 1986 to 1989, Mr. Davis served as an independent
consultant to third party administrators of self-insured workers' compensation
programs. He acted as President and Director of James R. Davis & Associates,
Inc., a corporation providing cost management services, from 1980 to 1986, which
he sold in 1985. He was President of Gates, McDonald & Company, a corporation
providing cost management services from 1971 to 1979.

David White has been President of Oakfield Convalescent Center since 1979 to the
present date. He was also President of White Realty Company from 1972 to 1981, a
real estate company.

                                       22

<PAGE>   23
Item 10. Directors and Executive Officers of the Registrant (continued)
         --------------------------------------------------------------

Daniel Harkins is a private investor. He also serves as a Director of Ohio
Indemnity Company and Bancinsurance Corporation. Prior to 1987, Mr. Harkins was
the owner and president of Ace Beverage Distributing Company. From 1973 to 1978,
he served as General Sales Manager and International Sales Manager for several
divisions of Ashland Chemical Co., and from 1978 to 1980, he served as a
consultant for A.T. Kearney Inc., a management consulting firm.

Stephen Wolf has been the President of American Legal Publishing Corporation
since its incorporation in 1988. He was formerly President of American Legal
Publishing Company from 1984 to 1988, and served in other positions including
Staff Attorney and Vice President from 1979 to 1984. In addition, Mr. Wolf has
been an elected official of the City of Mt. Healthy, Ohio, serving as Law
Director from 1980 to 1983, as a Council person from 1984 to 1985, as Mayor from
1988 to 1995 and again as Law Director from 1996 to the present.

Sally Cress has been Secretary and Treasurer of the Registrant as well as of
Bancinsurance Corporation and Ohio Indemnity Company since March 1985. She also
serves as a Director of Ohio Indemnity Company and as Secretary and Treasurer of
BCIS Services, Inc. Mrs. Cress is a Certified Public Accountant.

There are no arrangements or understandings between any of the officers and
directors of the Registrant and other persons relating to their selections as
officers and directors.

All Directors of the Registrant serve a term of one year or until their
successors are elected and qualified. The officers serve at the discretion of
the Board of Directors.


Section 16(a) Beneficial Ownership Reporting Compliance
-------------------------------------------------------

Section 16(a) of the Securities Exchange Act of 1934 requires the Registrant's
officers and directors, and greater than 10% shareholders, to file reports of
ownership and changes in ownership of the Registrant's securities with the
Securities and Exchange Commission ("SEC"). Copies of the reports are required
by SEC regulation to be furnished to the Registrant. Based on its review of such
reports and written representations from reporting persons, the Registrant
believes that, during fiscal 1998, all filing requirements were complied with.


Item 11. Executive Compensation
         ----------------------

The table below shows the cash compensation paid or accrued by the Registrant
during the fiscal years ended December 31, 1998, 1997 and 1996, respectively, to
the Chief Executive Officer of the Registrant. During the fiscal year ended
December 31, 1998, 1997 and 1996, respectively, no other executive officer
received cash compensation in excess of $100,000 (based on salary and bonus).

                      SUMMARY COMPENSATION TABLE

<TABLE>
<CAPTION>
(a)                            (b)               (i)
Name and Principal                               All Other
Position                      Year               Compensation($)(1)
-------------------------------------------------------------------
<S>                           <C>                <C>
SI SOKOL
Chairman, President           1998               21,250
Chief Executive
Officer                       1997               10,800

                              1996               10,600
</TABLE>

------------------

(1)    This amount includes $20,000 in consulting fees paid to Mr. Sokol.
       Additionally, $1,250, $800 and $600 in directors fees were paid to Mr. Si
       Sokol during 1998,

                                       23
<PAGE>   24
       1997 and 1996, respectively. Mr. Sokol did not receive any other
       compensation from the Registrant.

Compensation Pursuant to Plans:

The Registrant has no annuity, pension, retirement stock option, stock
appreciation or similar plans for its officers or employees.

On March 1, 1996, the Company implemented the American Legal Publishing
Corporation Employee 401(k) Plan (the "401(k) Plan"). The 401(k) Plan is
available to full-time employees who meet the 401(k) Plan's eligibility
requirements. Under the 401(k) Plan, the Company matches 50% of the qualified
employee's contribution up to 6% of salary. The total cost of the matching
contribution was $15,331 for the year ended December 31, 1998.

Compensation of Directors:

The Registrant pays each director a fee of $250 per meeting for attending
meetings of the Board of Directors.


Item 12. Security Ownership of Certain Beneficial Owners and Management
         --------------------------------------------------------------

The following table sets forth: (i) the name and address of each person known by
the Registrant to be the beneficial owner of more than 5% of any class of the
Registrant's voting securities and each director and each officer named in the
Summary Compensation Table of the Registrant; and (ii) the number and percent of
the Registrant's common shares beneficially owned by each such person and by all
directors and officers of the Registrant as a group as of December 31, 1998:

<TABLE>
<CAPTION>
                                     Number of Shares            Percent
Name of Beneficial                     Beneficially                of
      Owner                             Owned (1)                 Class
------------------                   ----------------            -------
<S>                                  <C>                         <C>
James R. Davis                             2,000                   0.1%
Director
20 East Broad Street
Columbus, Ohio  43215

Daniel D. Harkins                              0                   0.0%
Director
20 East Broad Street
Columbus, Ohio  43215

David White                               25,000                   1.9%
Director
20 East Broad Street
Columbus, Ohio  43215

John S. Sokol                             74,250 (2)               5.5%
Director
20 East Broad Street
Columbus, Ohio  43215

Barbara Sokol                            726,773 (2)              53.8%
20 East Broad Street
Columbus, Ohio  43215

Si Sokol                                 726,773 (2)              53.8%
Chairman and President
20 East Broad Street
Columbus, Ohio  43215

All Directors and Officers               778,023                  57.6%
as a group (six persons)
</TABLE>

                                       24
<PAGE>   25
(1)    Except as otherwise noted, none of the named individuals shares with
       another person either voting or investment power as to the shares
       reported.

(2)    Includes 300,300 shares owned by Barbara Sokol, of which 150,000 shares
       are owned by her a trustee for her children, including 50,000 shares as
       trustee for John Sokol, and 426,473 shares owned by Si Sokol, her
       husband. The rules of the Securities and Exchange Commission require that
       Mr. and Mrs. Sokol's shares be aggregated for purposes of this
       disclosure; however, Mr. and Mrs. Sokol each disclaim any beneficial
       ownership of the other's shares.


Item 13. Certain Relationships and Related Transactions
         ----------------------------------------------

See Item 2, Properties.


                                     PART IV


Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
         ---------------------------------------------------------------

(a)    Exhibits
       --------

       3(a)   Amended Articles of Incorporation (reference is made to Exhibit
              3(a) of Form 10-K for the fiscal year ended December 31, 1986
              (file number 0-8254), which is incorporated herein by reference).

       3(b)   Amended Articles of Incorporation (reference is made to Exhibit
              3(b) of Form 10-K for the fiscal year ended December 31, 1988
              (file number 0-8254), which is incorporated herein by reference).

       3(c)   Amended Code of Regulations (reference is made to Exhibit 3(b) of
              Form 10-K for the fiscal year ended December 31, 1980 (file number
              0-8254), which is incorporated herein by reference).

       10     Acquisitions. Asset Purchase Agreement among American Legal
              Publishing Corporation, the Registrant, American Legal Corporation
              and AM Comp, Inc. dated January 12, 1988 (references made to
              Exhibit 10 of Form 10-K for the fiscal year ended December 31,
              1987 (file number 0-8254), which is incorporated herein by
              reference).

       21     Subsidiaries of the Registrant (reference is made to Exhibit 21 of
              Form 10-K for the fiscal year ended December 31, 1996 (file number
              0-8254), which is incorporated herein by reference).

       27*    Financial Data Schedule.

---------------------
*  Filed with this Report


(b)    Financial Statement Schedules
       -----------------------------

       Financial Statement schedules are omitted because of the absence of
       conditions under which they are required or because the required
       information is included in the financial statements or notes thereto.

(c)    Reports on Form 8-K
       -------------------

       No reports on Form 8-K were filed by the Registrant during the quarter
       ended December 31, 1998.

                                       25
<PAGE>   26
                                   Signatures
                                   ----------

       Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                                      Westford Group, Inc.
                                                      (Registrant)

                                       3/18/99   By          Si Sokol
                                      ---------    -----------------------------
                                        DATE                 Si Sokol
                                                      President and Chairman
                                                      of Board of Directors
                                                   (Principal Executive Officer)


       Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons, which include the Chief
Executive Officer, the Chief Financial Officer and a majority of the Board of
Directors, on behalf of the Registrant and in the capacities and on the dates
indicated:


 3/18/99            Si Sokol                  3/18/99         Sally Cress
---------  ----------------------------      ---------  ------------------------
  DATE              Si Sokol                   DATE           Sally Cress
              President and Chairman                    Treasurer and Secretary
              of Board of Directors                     (Principal Financial and
           (Principal Executive Officer)                   Accounting Officer)


 3/18/99         David J. White               3/18/99      Daniel D. Harkins
---------  ----------------------------      ---------  ------------------------
  DATE           David J. White                DATE        Daniel D. Harkins
                    Director                                   Director


 3/18/99         James R. Davis               3/18/99         John Sokol
---------  ----------------------------      ---------  ------------------------
  DATE           James R. Davis                DATE           John Sokol
                    Director                                   Director

                                       26
<PAGE>   27
                       WESTFORD GROUP, INC. AND SUBSIDIARY

                          SUBSIDIARY OF THE REGISTRANT
                          ----------------------------


                              WESTFORD GROUP, INC.
                       ----------------------------------
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